Google Ads (previously called Adwords) is one of the most popular digital marketing channels for law firms because it can provide quick results that are highly accountable. Every dollar can be analysed to see where it is providing the most returns in seconds.
However, knowing how much to spend, especially when you are starting out or have a limited budget can be challenging.
The answer to this is that there are two fees, one for your Adwords manager and one for media spend. Media spend should be at least $1,000 per month to start, and a manager can form 20-40% of the media spend, usually lowering down to approximately 15-30% of your spend as budgets get higher than $2,000 a month.
Why is there a minimum spend?
Adwords works on data. Managers will setup your account based on the best possible keyword and competitor strategy, then they will see how your ads (and sometimes website) performs over time.
They will look for things such as:
- What unexpected keywords are actually being searched for in conjunction with your target keywords
- Which areas are getting lots of clicks but no results
- What keywords are getting the most conversions
- What times are providing the best ROI
- What ads are performing better versus other ads?
In order to understand what is happening, they will need to get enough data from your campaign. You can call it a statistically relevant sample size.
In the case of lawyers, a single click can be upwards of $10. So then if your budget were only $100, you could only get 10 clicks worth of data spreads out across 3-5 services, which would not give you any actionable information to refine your account setup into something effective.
What if I want to spend less?
Spending less is not advisable for the above reason that you will not get enough data.
However, you can spend less if you are happy with slower results (less than 100 clicks a month) and just ‘want to get the campaign started’ so that you have the marketing activity engaged and starting to build momentum.
What budget do I need?
Unfortunately, this depends.
If you are bidding in a competitive area, such as personal injury law, your budgets are going to be much higher as clicks range as high as $150+ per click. With a hypothetical 10% conversion rate, purely as an example, you would need to spend at least $1,500 to receive a lead.
Therefore it makes sense to work with a budget that can at least bring you some kind of results on a monthly basis. It is best to ask your Adwords manager for statistics for your particular service area and offering.
Adwords is an investment that can provide clicks and traffic to your website very quickly. The counterbalance to this is that it requires a higher investment than other marketing alternatives.
If you need help picking the right Adwords agency or having your Adwords campaigns setup and managed for you, feel free to reach out to me here for a free no-obligation discussion regarding your options and some suggested ways to move forward.